BENTLEY SYSTEMS INC-CLASS B (BSY) Stock Fundamental Analysis
NASDAQ:BSY - Nasdaq - US08265T2087 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BSY. BSY was compared to 281 industry peers in the Software industry. BSY has an excellent profitability rating, but there are concerns on its financial health. BSY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BSY had positive earnings in the past year.
In the past year BSY had a positive cash flow from operations.
BSY had positive earnings in each of the past 5 years.
Each year in the past 5 years BSY had a positive operating cash flow.
1.2 Ratios
BSY has a Return On Assets of 6.90%. This is in the better half of the industry: BSY outperforms 79.36% of its industry peers.
BSY's Return On Equity of 22.55% is amongst the best of the industry. BSY outperforms 87.19% of its industry peers.
BSY has a better Return On Invested Capital (9.66%) than 86.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BSY is below the industry average of 12.03%.
The 3 year average ROIC (8.00%) for BSY is below the current ROIC(9.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.55% | ||
| ROIC | 9.66% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
1.3 Margins
Looking at the Profit Margin, with a value of 17.35%, BSY belongs to the top of the industry, outperforming 82.92% of the companies in the same industry.
BSY's Profit Margin has improved in the last couple of years.
BSY has a Operating Margin of 23.09%. This is amongst the best in the industry. BSY outperforms 90.39% of its industry peers.
BSY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.95%, BSY belongs to the best of the industry, outperforming 84.70% of the companies in the same industry.
BSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.09% | ||
| PM (TTM) | 17.35% | ||
| GM | 80.95% |
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
BSY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BSY has been increased compared to 1 year ago.
The number of shares outstanding for BSY has been increased compared to 5 years ago.
Compared to 1 year ago, BSY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.88 indicates that BSY is not in any danger for bankruptcy at the moment.
BSY has a better Altman-Z score (3.88) than 65.12% of its industry peers.
BSY has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as BSY would need 3.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.30, BSY is doing good in the industry, outperforming 63.35% of the companies in the same industry.
BSY has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, BSY is doing worse than 77.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.96
WACC10.08%
2.3 Liquidity
A Current Ratio of 0.54 indicates that BSY may have some problems paying its short term obligations.
With a Current ratio value of 0.54, BSY is not doing good in the industry: 89.68% of the companies in the same industry are doing better.
BSY has a Quick Ratio of 0.54. This is a bad value and indicates that BSY is not financially healthy enough and could expect problems in meeting its short term obligations.
BSY's Quick ratio of 0.54 is on the low side compared to the rest of the industry. BSY is outperformed by 89.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.58% over the past year.
The Earnings Per Share has been growing by 12.41% on average over the past years. This is quite good.
The Revenue has grown by 10.16% in the past year. This is quite good.
The Revenue has been growing by 12.93% on average over the past years. This is quite good.
EPS 1Y (TTM)17.58%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%5%
Revenue 1Y (TTM)10.16%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%12.61%
3.2 Future
Based on estimates for the next years, BSY will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
The Revenue is expected to grow by 9.56% on average over the next years. This is quite good.
EPS Next Y8.85%
EPS Next 2Y11.69%
EPS Next 3Y13.36%
EPS Next 5Y15.84%
Revenue Next Year9.29%
Revenue Next 2Y9.83%
Revenue Next 3Y9.46%
Revenue Next 5Y9.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.30, BSY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BSY is valued a bit cheaper than the industry average as 61.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.87. BSY is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 37.02, which means the current valuation is very expensive for BSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BSY indicates a somewhat cheap valuation: BSY is cheaper than 61.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, BSY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.3 | ||
| Fwd PE | 37.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSY is valued a bit cheaper than 70.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BSY is valued a bit cheaper than 72.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.99 | ||
| EV/EBITDA | 38.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BSY has an outstanding profitability rating, which may justify a higher PE ratio.
BSY's earnings are expected to grow with 13.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.55
PEG (5Y)3.25
EPS Next 2Y11.69%
EPS Next 3Y13.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, BSY is not a good candidate for dividend investing.
BSY's Dividend Yield is rather good when compared to the industry average which is at 14.60. BSY pays more dividend than 91.46% of the companies in the same industry.
With a Dividend Yield of 0.64, BSY pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
BSY has been paying a dividend for over 5 years, so it has already some track record.
BSY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
30.73% of the earnings are spent on dividend by BSY. This is a low number and sustainable payout ratio.
DP30.73%
EPS Next 2Y11.69%
EPS Next 3Y13.36%
43.12
-0.32 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners42.78%
Inst Owner Change1.36%
Ins Owners41.13%
Ins Owner Change0.2%
Market Cap13.05B
Analysts75.79
Price Target53.69 (24.51%)
Short Float %3.98%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP30.73%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.02%
Min EPS beat(2)-4.04%
Max EPS beat(2)-2.01%
EPS beat(4)2
Avg EPS beat(4)10.53%
Min EPS beat(4)-4.04%
Max EPS beat(4)31.97%
EPS beat(8)6
Avg EPS beat(8)14.32%
EPS beat(12)10
Avg EPS beat(12)13.87%
EPS beat(16)14
Avg EPS beat(16)18%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)-8.17%
PT rev (3m)-9.89%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-3.84%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.3 | ||
| Fwd PE | 37.02 | ||
| P/S | 9.65 | ||
| P/FCF | 30.99 | ||
| P/OCF | 29.99 | ||
| P/B | 12.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.4 |
EPS(TTM)1.07
EY2.48%
EPS(NY)1.16
Fwd EY2.7%
FCF(TTM)1.39
FCFY3.23%
OCF(TTM)1.44
OCFY3.33%
SpS4.47
BVpS3.44
TBVpS-5.09
PEG (NY)4.55
PEG (5Y)3.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.55% | ||
| ROCE | 12.08% | ||
| ROIC | 9.66% | ||
| ROICexc | 9.91% | ||
| ROICexgc | N/A | ||
| OM | 23.09% | ||
| PM (TTM) | 17.35% | ||
| GM | 80.95% | ||
| FCFM | 31.13% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
ROICexc(3y)8.22%
ROICexc(5y)11.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10%
ROCE(5y)13.18%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y4.29%
ROICexc growth 5Y-15.93%
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 21.74% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 18.16 | ||
| Cash Conversion | 115.47% | ||
| Profit Quality | 179.48% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 3.88 |
F-Score7
WACC10.08%
ROIC/WACC0.96
Cap/Depr(3y)27.47%
Cap/Depr(5y)32.2%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.72%
Profit Quality(3y)148.6%
Profit Quality(5y)185.51%
High Growth Momentum
Growth
EPS 1Y (TTM)17.58%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%5%
EPS Next Y8.85%
EPS Next 2Y11.69%
EPS Next 3Y13.36%
EPS Next 5Y15.84%
Revenue 1Y (TTM)10.16%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%12.61%
Revenue Next Year9.29%
Revenue Next 2Y9.83%
Revenue Next 3Y9.46%
Revenue Next 5Y9.56%
EBIT growth 1Y25.72%
EBIT growth 3Y18.11%
EBIT growth 5Y17.09%
EBIT Next Year17.55%
EBIT Next 3Y15.27%
EBIT Next 5Y11.28%
FCF growth 1Y7.54%
FCF growth 3Y15.91%
FCF growth 5Y22.26%
OCF growth 1Y4.46%
OCF growth 3Y14.76%
OCF growth 5Y20.58%